The Myth Of Full Coverage Or Why You Need Underinsrued or Uninsured Motorist Coverage

We hear it all the time: "It's OK.  I have full coverage."

 

No, you don't.  It doesn't exist. It is a term used by lazy or uninformed insurance agents.  It measn, you have sufficent coverage under your state's laws to meet its financial responsibility laws so that if you pulled over you have enough coverage to not get ticket.

 

Liability coverage is the coverage that protects people you hurt if you cause a crash.  If you have $25,000 in liability coverage that means your insurance company will pay up to $25,000 to the person you hurt when you ran the red light.  This covers their medical bills, pain and suffering, and lost wages. 

 

Liability coverage does not protect you if you are hurt.  That is why Underinsured and Uninsured Motorist Coverage (commonly UM/UIM and usually the same thing) is so important.  Example.  You are hurt when a driver runs a stop sign.  They have $25,000 in coverage.  But, you have $30,000 in medical bills, $2,000 in lost wages, and pain and suffering.  Well, $25,000 isn't enough.  If you don't have UM/UIM you can't look to your insurance to help cover those damages.  If you have it, you can!

 

Call your insurance broker or agent and ask them if you have UM/UIM coverage.  If you don't, please look into adding it.  As they say before your flight takes off, put your mask on first!  UM/UIM is that mask if you are in a car crash.